What’s Behind Miami’s Hot Studio Condo Market?
Two specialists discuss how the surge is transforming the metro’s real estate landscape.
In recent years, the Miami condo market has seen a dramatic rise in studio apartments. Once a rarity, these compact living spaces are now one of the most sought-after commodities. As starting prices for new construction condos in the city continue to soar and units under $1 million are increasingly scarce, studio condos are becoming an attractive and affordable alternative.
In-migration from high-cost metros, lack of developable land, as well as economic and lifestyle trends, are some of the main factors driving this studio comeback. New projects like Fortune International Group and Blue Road’s Nexo Residences in North Miami Beach or Urban Network Capital Group and Vertical Developments’ Visions at Brickell Station in the Brickell neighborhood are just a couple of developments providing studio apartments at prices starting from less than $600,000.
To understand how these smaller units are impacting Miami’s real estate landscape and what the future holds for this booming market segment, Multi-Housing News spoke with Fortune International Group’s Maria Elena Plasencia, sales director of Nexo Residences, and Robert Thorne, CEO of UNCG.
Tell us a few details about your latest studio condo projects. What exactly makes them so attractive to buyers?
Thorne: Visions at Brickell Station, a wellness-forward condo-hotel project, is situated in Miami’s Brickell neighborhood. A hallmark of the development is its extensive wellness experience—each condo-hotel unit incorporates biohacking technology to promote optimal well-being, with features such as circadian lighting, probiotic diffusers, grounding bed mattress pads and vitamin C shower filters. An array of luxury amenities includes a sanctuary-like spa with an extensive menu of rejuvenating experiences ranging from massage treatments and BrainTap therapy to cold plunge and more. Additional spaces for restoration and recreation include a rooftop pool and terrace, an onsite restaurant and bar, a state-of-the-art gym and a corporate meeting event space.
Plasencia: Studio units at Nexo Residences are well designed and smartly furnished to maximize use of space, blending the necessities of remote worklife with inspiration from South Florida as a year-round vacation destination. Each turnkey residence is fully finished with floor-to-ceiling windows, porcelain flooring, built-in closets, dedicated lockable owners’ closets, and expansive balconies with glass railings. European-style kitchens are outfitted with quartz countertops and matte black fixtures for a modern look. Enhanced digital features, such as smart key access, a self-service package system, and Wi-Fi throughout the common areas, provide ease for owners and guests.
Nexo Residences’ suite of amenities includes a two-story tech hub, outdoor children’s playground, multi-purpose clubroom and private event area, fitness center with a yoga studio, large pool deck, three summer kitchens, rooftop observatory deck and outdoor theater.
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Do you have any similar projects in Florida?
Thorne: A similar project that comes to mind is our project up north in Central Florida—The Flats Orlando, a wellness condo-hotel resort that offers luxury living near Orlando’s attractions. Comprising 160 units—similar to Visions at Brickell Station—the project focuses on wellness, offering circadian lighting and an onsite nutritionist. Amenity offerings include a spa, fitness center, rooftop terrace and pool.
Plasencia: Fortune Development Group is currently developing ORA by Casa Tua which, like Nexo, offers studios that have experienced great demand.
How has the market responded to studio condo developments so far?
Plasencia: Studios were a rarity in Miami’s condo market but in the last three to four years they have surged in popularity, experiencing significant demand from buyers and, in some cases, becoming one of the most popular types of units within a particular building.
Thorne: Studios have indeed become incredibly popular because they offer an attainable entry point into the condo market. This product is especially appealing to international buyers who seek investment properties to add to their portfolio that they can utilize as a pied-a-terre when they’re in town.
Tell us more about how demand for studio condos has evolved over the past few years.
Thorne: Demand for studios has grown tremendously, especially in recent years, as demand for short-term rentals has exploded. These units lend themselves well to the home-sharing model, particularly when part of a managed property with comprehensive amenities and an excellent location.
Plasencia: Before and during the pandemic, there was minimal demand for studio condos. In fact, developers who had initially planned to include studios in their projects reconsidered and converted these units into one-bedroom apartments due to the lack of interest. At that time, people preferred more spacious units. However, after the pandemic, lifestyle changes such as the shift to remote work have driven a surge in demand for studio condos, making them highly popular today.
Furthermore, the growing popularity of short-term rental developments has fueled this demand. At Nexo, we have seen significant interest from foreign buyers looking for well-priced units as investment opportunities. Studio condos are the ideal choice, providing these buyers with the flexibility to rent them out when they are not using the unit.
What would you say is behind the surge in popularity of studio condos across Miami?
Thorne: The surge in popularity of studio condos across Miami can be attributed to several interrelated factors. First, the availability of developable land in some of Miami’s most desirable neighborhoods, like Brickell, has dwindled significantly. This scarcity has prompted developers to make the most out of the limited space available, leading to an increase in the construction of smaller, more efficient units. Buyers and renters are now more willing to consider these compact living spaces because they prioritize location over size, seeking the vibrant urban lifestyle that areas like Brickell offer.
Plasencia: Skyrocketing demand for attainably priced condos and the migration of residents from high-density cities to Miami, paired with increased construction costs and dwindling developable land, has prompted developers to optimize the use of available square footage.
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To what extent has the migration of residents from high-density areas like New York City influenced the design of studio condos in Miami?
Thorne: We are witnessing a shift in floorplan designs as multifamily and condo buildings are emphasizing developing more studio units and continuing to elevate their designs and features. New Yorkers, in particular, bring with them sensibilities and experience in making every square inch of their living space count, which has contributed to a new standard in Miami. This influx has prompted a rethinking of space utilization, encouraging developers to maximize efficiency without sacrificing comfort. The result is a wave of studio apartments that cater to the sophisticated tastes and practical needs of these new Miami residents, blending compact living with high-end design and functionality.
Plasencia: New Yorkers are accustomed to smaller living spaces, so by comparison, Miami studios feel like an upgrade in terms of size. This demographic shift has also brought a new appreciation for efficient, well-designed living spaces.
Due to its EB-5 designation, the 15-story Nexo Residences development has been particularly appealing to foreign buyers. All images courtesy of Fortune International Group and Blue Road 
The 254-unit community will include an outdoor seating area with umbrellas. 
Nexo Residences will feature a two-story arrival lobby lounge with reception and concierge. 
A two-story tech center with café, coworking spaces and business center is also included in the project.
Are there other demographic trends influencing the popularity of studio apartments?
Plasencia: Pent-up interest from Latin American buyers, who were unable to purchase condos during the pandemic, has significantly contributed to the demand and popularity of these units. As they seek investment opportunities, studios have emerged as the ideal investment product for them. Moreover, as Miami’s economy continues to flourish, an influx of workers relocating to the city are making studio apartments an especially appealing option for those seeking a convenient and efficient work-life balance.
In what way are studio apartments providing an affordable option for buyers looking to live in popular areas of Miami?
Plasencia: As Miami market prices continue to climb, finding condos priced under $1 million has become increasingly challenging. Studios offer an affordable alternative for those who want to live in the city’s popular areas.
Thorne: As prices in Miami have skyrocketed, studios provide an attainable option. This is especially true of those within properties that allow short-term rentals, enabling buyers to earn a passive income by renting out their unit when they’re away.
How are developers balancing the need for affordability with the demand for high-quality, well-designed living spaces?
Plasencia: One way to balance affordability with high-quality living is to offer studio buyers exceptional amenities that create a live-work-play experience catering to various desires and needs. These can include high-end workspaces, entertainment options for families and children such as game rooms, playground and movie theaters, fitness and wellness amenities, spaces for socialization such as summer kitchens, restaurants, and more.
What do studio apartment buyers want? What have they come to expect?
Thorne: Over the years, we have seen great interest in open-floor concepts in residential design. Considering that studios offer blank slates with unobstructed layouts, buyers have the flexibility to tailor spaces to their desires and needs without having to adhere to the constrictions that walls can create in other floorplans.
Plasencia: The main design innovation enhancing the appeal of studio condos is the introduction of fully furnished units. Turnkey, move-in-ready studios are in high demand not only for their convenience but also for the benefit of having an expert design your space, ensuring that units are as efficient and functional as possible.
Do you see this trend continuing to grow?
Plasencia: Yes, as demand to live in Miami continues to rise, we will see a shift towards more affordable units and efficient use of space. Studios are definitely here to stay.
Thorne: This trend may continue to grow as individuals are on the hunt for spaces that work for their desires and align with their budgets.
